Red tape, corruption hit businesses in India

Red tape, corruption hit businesses in India

According to a survey by the Hong Kong-based group, Political and Economic Risk Consultancy, India has the worst levels of excessive red tape.

It states that starting a business and enforcing contracts in India is extremely difficult.

The overall freedom to start, operate, and close a business remains restricted by India's regulatory environment, said the index of Index of Economic Freedom jointly released earlier this year by The Heritage Foundation and The Wall Street Journal.

Red tape, corruption hit businesses in India

Starting a business takes an average of 30 days, compared to the world average of 35 days. Obtaining a business license requires more than the world average of 18 procedures and 218 days, the study states.

The survey of more than 1,300 business executives in 12 Asian countries said Indian bureaucracy is the 'most stifling in the world'.

Red tape, corruption hit businesses in India

The report also says there is a strong link between bureaucracy and corruption, and a widely held belief that bureaucrats are selfish and highly insensitive to the needs of the people they are supposed to help.

A recent survey of the Indian bureaucracy had found large numbers of civil servants complaining of undue political interference.

They also fear that anyone questioning the system would be transferred to obscure postings.